Piyush Goyal
NEW DELHI: The Startup India initiative has evolved into an inclusive and innovative ecosystem across the country, channelising youthful entrepreneurial energy to create jobs and accelerate economic growth, paving the way for achieving Hon’ble Prime Minister Narendra Shri Narendra Modi’s Viksit Bharat 2047 mission.
India now has one of the world’s largest startup ecosystems. Today, entrepreneurship has become a nationwide movement that is reshaping India’s economic landscape and becoming a new engine of growth and job creation.
This transformation did not happen overnight. When the PM announced Startup India from the ramparts of the Red Fort on the Independence Day in 2015, he articulated a clear and ambitious vision that entrepreneurship must take root in every district and every block of the country.
Startup India has come a long way since it was launched by the Department for Promotion of Industry and Internal Trade (DPIIT) on January 16th, 2016. Startups are energising some of the most critical sectors of the economy. IT services, healthcare and life sciences, education, agriculture, and construction account for the highest concentration of startups.
New ventures have emerged across more than 50 other industries including climate tech and infrastructure. This breadth reflects innovation and resilience across diverse segments, particularly the sectors that are critical in national development priorities.
Innovation & AI: A defining shift over the past decade has been the growing focus on innovation and deep technology. India’s rank in the Global Innovation Index has improved from 81th in 2015 to 38th last year, and the Government’s support for deep tech ventures will improve it further. The number of AI startups is rising rapidly, building on the PM’s Digital India initiative.
The PM’s vision for building a deep-tech nation has led to the establishment of the Anusandhan National Research Foundation, and the launch of the India AI Mission and the Research Development and Innovation Scheme. India’s startups are also innovating across areas like aeronautics, aerospace and defence, robotics, green technology, Internet of Things and semiconductors, amongst others.
The sharp rise in intellectual property creation reinforces this trend. Indian startups have filed more than 16,400 new patent applications, reflecting a stronger focus on original innovation, long-term value creation, and global competitiveness.
Pan-India Growth: Equally significant is the pan-India support of entrepreneurship. From just four states with startup policies in 2016, India today has more than 30 states and Union Territories with dedicated startup frameworks. There are now DPIIT-recognised startups in every state and UT, underscoring the depth of institutional support and grassroots participation. More than 2,00,000 startups have been recognised so far, representing a decade of sustained, policy-led ecosystem development. In 2025 alone, more than 49,400 startups were recognised, the highest annual growth since Startup India began.
Inclusion has been a cornerstone of this journey. Women-led entrepreneurship has emerged as a major strength, with more than 45 per cent of recognised startups having at least one-woman director. Further, about half the startups are based in non-metro cities, highlighting the growing role of Tier II and Tier III cities as engines of innovation and employment.
Local to Global: As Indian startups scale, the world is increasingly their marketplace. To support global ambitions, Startup India has built strong international partnerships. Twenty-one international bridges and two strategic alliances now facilitate market access, collaboration, and expansion across key economies, including the UK, Japan, South Korea, Sweden and Israel. More than 850 startups have already benefitted from these initiatives.
In my recent visits to Sweden, Switzerland, New Zealand, and Israel, startups were an integral part of India’s business delegations. These engagements provided a platform to showcase Indian innovation globally, while exposing our entrepreneurs to innovation and business practices in developed economies.
Reforms, Market Access: Improving the ease of doing business has been central to enabling this growth. Eligible startups can avail of a tax holiday for three consecutive years within their first decade. More than 4,100 startups have already received eligibility certificates. Over sixty regulatory reforms have reduced compliance burdens, facilitated capital raising, and strengthened domestic institutional investment. The abolition of angel tax and the opening up of long-term capital pools to Alternate Investment Funds have further strengthened the startup funding ecosystem.
Access to markets has been prioritised. Through the Government e-Marketplace, over 35,700 startups have been onboarded, securing more than five lakh orders worth over ₹51,200 crore.
These efforts are complemented by strong financial support. Over Rs 25,500 crore has been invested by Alternative Investment Funds (AIFs) under the Fund of Funds for Startups scheme, benefiting more than 1,300 enterprises. Additionally, collateral-free loans worth over Rs 800 crore have been guaranteed under the Credit Guarantee Scheme for Startups.
Startup India Seed Fund Scheme with an outlay of Rs 945 crores provides financial assistance to startups for Proof of Concept, prototype development, product trials, market-entry and commercialization.
Cultural Change: Indian startups heralded a significant cultural change in the country, where children were encouraged to aim for jobs in a few sectors such as Government service, engineering or medicine. Today, many young Indians aspire to be job creators, not job seekers, and their families respect and encourage entrepreneurial ambitions.
India’s startup journey is ultimately a story of confidence in our young entrepreneurs, in policy-led growth, and in India’s capacity to innovate for the world. As we move confidently towards our mission to become a developed country by 2047, startups will remain central to building a prosperous, inclusive, and globally competitive India.
